Your Bitcoin Just Got Crushed by AI Fears Again

From $70,000 to $65,000 in a matter of days. Bitcoin just gave back nearly all its recent gains, and this time, artificial intelligence is the culprit crushing both crypto and the broader tech sector.

When 'Programmable Money' Meets Programmable Fear

Bitcoin fell 2% on Wednesday, dragging ether and solana down with it. But here's the kicker: the crypto's decline perfectly mirrored the 2% drop in the Nasdaq and the brutal 3% plunge in software stocks.

Macro strategist Jim Bianco put it bluntly: "Software stocks are struggling again today. Don't forget there's another type of software, 'programmable money,' crypto. They are the same thing."

The iShares Expanded Tech-Software Sector ETF (IGV) has now crashed 21% year-to-date as investors question whether pricey software companies can justify their valuations when AI agents are getting exponentially better at coding.

Even 'Safe Havens' Aren't Safe

The panic spread beyond digital assets. Gold and silver, which had been cruising with modest gains, suddenly plummeted in the afternoon. Silver crashed 10.3% to $75.08 per ounce, while gold dropped 3.1% to $4,938.

When traditional safe havens get swept up in a tech selloff, you know the fear is real.

Coinbase Adds to the Gloom

As if crypto needed more bad news, Coinbase reported disappointing Q4 earnings. Transaction revenue fell to $982.7 million, down from $1.046 billion the previous quarter and $1.556 billion a year ago.

Even worse? The company has only generated about $420 million in transaction revenue through February 10th this year, signaling continued weakness in crypto trading volumes.

The Correlation Conundrum

Bitcoin was supposed to be digital gold – a hedge against traditional markets. Instead, it's become a leveraged bet on the tech sector. The 97% correlation between crypto and software stocks isn't a bug; it's now a feature.